The Ninth Circuit of Appeals has ruled that Isohunt's founder, Gary Fung, is liable for copyright infringement committed by the site's users because he possessed "red flag" knowledge that infringement was occurring. In its 59-page ruling, the Ninth Circuit court upheld most of a lower-court's decisions.

The main takeaway from this ruling is that if a site's operator is found to be inducing copyright infringement, they are no longer allowed in the safe harbor. The Court was able to identify that Fung induced copyright infringement through his posts on the Isohunt forums:

[Fung] communicated a clear message by responding affirmatively to requests for help in locating and playing copyrighted materials...posted numerous messages to the isoHunt forum requesting that users upload torrents for specific copyrighted films.